Helping a Director Avoid Bankruptcy After Insolvency

Background

Our client, a director of a once-thriving limited company, faced severe financial hardship after the business entered insolvency following the Covid-19 pandemic. Having previously entered into multiple personal guarantees for commercial contracts and financing, the director was pursued by creditors once an insolvency practitioner was appointed. With debts mounting, the director needed urgent legal support to assess his financial position and explore options to avoid bankruptcy.

Approach

We conducted a thorough review of the personal guarantees, advising on their validity and the director’s financial standing. Our approach required careful organisation, prioritisation, and tactical negotiation with creditors to seek favourable settlements. Throughout the process, we balanced providing frank legal advice with offering a steady, reassuring presence, recognising the emotional toll of potential bankruptcy.

Outcome

Through strategic negotiations, we successfully secured settlements that allowed the director to avoid bankruptcy, ensuring he could move forward in his career without financial or legal constraints. The process was complex and prolonged, but with our guidance and persistence, the client reached a resolution that protected his future.